MY PERSONAL FINANACE

AWARENESS THROUGH WISDOM

If you are planning to purchase the term insurance plans then yes, you have made the right choice and you should go forward. The right choice of a term insurance plan provides you a financial protection and most importantly it secures the future of your family.

The life is full of twists and turns which also befits in the old saying ‘Always Expect the Unexpected from Life.‘ So, you should always cautious about the risks like critical illness, hospitalization, and accidental disability as well. These dangers make the term insurance important for you to look beyond the traditional need.

The chances of unexpected dangers at any stage of your life can never be ignored. In these times, exorbitant expenses may occur in your health, family welfare, and the study of children or any other expenses. So, if you are the only earning member of the family, critical illness can push your savings down south. Financial worries can also impact your growth. The answer to all these dilemmas is ‘Term Insurance.’ But before starting to purchase the term insurance plan, you should know all about regarding this.

Here we are going to give you the most significant approaches and benefits those will definitely help and attract you while buying any term insurance plan –

Benefits of Term Insurance –

Easy payment terms –

Usually, the term insurance policies give options for premium payment and death benefit. So, if you are unable to afford a lump sum amount to pay for term insurance due to the cash crunch then you can split your lump sum amount into 12 monthly installments or four quarterly payments or even two half-yearly installments as well.

In the term insurance plan, the great advantage is the death benefit which can be received by your nominee in a lump sum or in a number of amounts. If you are going to purchase the term insurance online then you will have the multiple options to show and related benefits that you can explore, before making the final purchase of the term policy.

Lump Sum Payment –

After purchasing the term insurance plan, the biggest benefit is the lump sum payment that he/she gets during his/her emergency or critical period. This financial support helps you in both hospitalization expenses as well. The money which you receive helps you to put your mind at ease about the medical expenses involved.

Get rid of Deductions –

One of the biggest benefits of purchasing the term plan is that on the diagnosis of the covered critical illness, the entire benefit amount is paid in full. Most importantly, there are not any deductions during your entire coverage amount unlike any other investment plans. So if you are promised to pay the 10 lakh rupees after that period then you will be paid this full amount without any deductions.

Tips for Purchasing the Term Plans –

Online Purchase –

In the era of the digital world, all insurers offer the easy option of buying a term plan with the various attractive schemes. So if you are buying the term plans online then it will be many benefits, such as cheaper premium and complete privacy for your term plan. Also, the term plan is available after a click and buying a term insurance policy online can happen in just 5 minutes.

During the registration, you should keep all the related document together while filling the information such as nominee, date of birth, some basic data like your medical history, your employment status and most importantly the stable internet connection during the process.

Also, the purchase of term insurance can be done in the privacy of your home and without any external help. By choosing a long policy term, one can ensure that the rate of annual premium is constant for the upcoming years or not. The great benefit of purchasing the term insurance online is that you can calculate your premium online using the calculator which is given in most of term insurance sites.

Regular Premiums –

This is one of the feature tips that you should check before purchasing any term insurance plan. The premiums for must be remained same throughout the term, whereas the premiums for term Insurance Plans would change every year on policy renewal which is based on your age.

Talk to the Expert Team –

In this digital era, there is still a confusing subject and the person does not feel the need to speak with an expert to get clarity on their doubts. Also, only the paper materials are not enough to clear their doubts about taking the right decision. So, if you want to make the things easier before purchasing the term plans then you should speak to the particular term insurance company’s agents and they are always ready to answer all your queries and assist you in making this important decision. Nowadays, term plans have become mandatory to your financial portfolio because they are simple, easy to understand and can take care of your financial needs to a very large extent.

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Must Read Terms and Conditions –

This is the mandatory thing for all before purchasing any insurance product so must go to the terms and conditions. Also, make it sure that the particular company has mentioned its terms and conditions apparently which must be easier to read the details and understand the subject matter.

Moreover, you should also compare the different insurance company’s products which are listed on that website by which you will get know their differences and the benefits which are offered by each one of them. This thing will also help you in making the decision clear and quicker.

Pre-Existing Conditions –

Before choosing any term insurance plan you should carefully read the pre-existing conditions of that insurer. Also, you should know about the waiting period applied to pre-existing diseases before they are covered before purchasing any term plan.

So, all in all, you can’t go plain in your life because our life is undetermined. We never know what will happen to us tomorrow or what future has in store for us. So, now it becomes important to get prepared for whatever we can. Term Insurance is a plan that secures your future so you must go to these various plans that help you in any critical stage of your life and your family’s life.

Introduction

Investment is an useful habit should be adopted by everyone looking for strong financial safety in the future. Investing some amount of money for future can be a helpful way to financial freedom in near future. It is can be a little difficult for people to decide which investment mode to select to keep their amount safe. ‘Mutual fund’ is a genuine way of investment for those looking for easy as well as a safe investment.

What is a mutual fund?

‘Mutual funds’ is a type of investment product helpful to generate income for its shareholders. In mutual funds investors pools their money together for the purpose of investing in stocks, bonds, debentures, short-term money market instruments and commodity as well. Here everything is managed by professional fund managers who are experts in managing investment and hence considered as a best way of investment. Mutual funds are easy to understand, well-managed and affordable as well. By investing in mutual funds investors becomes partial owner of the assets invested in the mutual funds.

Different types of mutual funds

There are many types of mutual funds one can avail to invest. These are main types of mutual funds amongst which investors can choose the suitable type for investment.

Open

This is a popular type of mutual funds where investors are free to invest as well as redeem their invested amount anytime.

Closed

In this type investors have to invest the amount at the starting and they can redeem it only when its tenure ends.

Interval

Here one can invest as well as redeem the invested amounts only on the dates one has defined previously. Apart from this based on investments mutual funds are categories in four different types which are

Equity

Equity is a best choice for the investors looking for the highest return on their investment. It is a little risky but the beneficial way of investment.

Debt

This is safest way of investment where investors invest in the different government as well as the corporate bonds. The return provided over this investment is generally low.

Hybrid

This is a well-managed combination of both equity and bonds as well. Hybrid mutual fund gives average returns and a risk involve in this type of investment is modest.

Other

Other mutual funds include investment in real-estate, gold and commodity as well. It gives medium return and the risk involve in it is also moderate.

Why investing in a Mutual fund is beneficial?

The investment in mutual funds is always fruitful and safe. You can earn the desired profit with low risk by investing in securities including stocks, government bonds, gold and commodities as well. Still are you confused about the reliability of mutual funds then below mentioned are some proven benefits of investing in mutual funds. Go through these and have a smart investment.

1. Safest investment

The profit over investment in stock market is depends upon the performance of the market but in case of mutual funds investors need not to worry about unexpected losses due to fluctuations in the market. A mutual fund does not involve more risk as compared to stock market and returns over the investments are pre-defined.

2. Highest returns

Mutual fund is an excellent source of earning a higher return over initial investments. One can earn even more amount of 30% in first year only. In Mutual fund there is no need to invest for the longer period and within the shorter span you can earn impressive rate over your investments. The securities through which money usually get invested are selected carefully by the experts and this is a reason there is a low chances of risk in this investment.

3. Invest less and earn more

In mutual fund investors no need to invest large investment you can invest an amount of money you afford only. With very less capital amount investment one can earn more amounts within less time period. A mutual fund is a suitable way for those who can’t afford maximum investment.

4. Expert management

Mutual funds are professionally manages by the experts in a particular field. Generally these are handled by the fund managers who are expert people in the managing every issue related to the investment in the mutual funds. They take into account your objectives, capabilities, expected returns and duration of the investment and manage these parameters on behalf you to give to desired return over the investment.

5. Transparent process

Despite being a safe investment process mutual funds are transparent as well. Fund managers time to time gives you every details regarding the planning your investments and apart from this you can also avail factsheet of it on corresponding website.

6. Diversification

Mutual funds are generally depends upon the stocks and bond which are greatly diverse. It consist involvement of stocks or bonds of different industries and this is a reason fluctuation in the market does not affect the investment of mutual funds seriously. There is a possibility of increasing value of one stock while another may experience downfall and this situation bitterly balances the overall process.

How to make a profit through investment in Mutual funds?

1. Don’t give up in struggling Period

Be firm on strategy of your investment and don’t let market fluctuations scares you. Not every day is same someday there will be a downfall and some day you may also experience huge profit as well. However the situation does not let them affect your decision of investment. Be positive in every situation.

2. Increase your capital investment every year

Try to increase your initial investment every year. You can start with a less amount but you should increase this investment amount yearly when your monthly investment becomes enough to diversify.

3. Check your performance yearly

Don’t forget to take follow-ups of your investment in mutual funds yearly. Rather than checking it frequently you can check it on the yearly basis to regulate its performance. If you observe any of your fund’s performance is not performing well for more than six months, then it is always suggestible to replace it with a suitable option.

Conclusion

You might understand very well how Mutual funds can be a trusted source of earning highest return without investing more capital investment. Smart investment is always beneficial from every aspect and to experience it you should go for investing in mutual funds without fear.

As a result of the demonetization matter, many people are moving to online transactions through net banking, whether it is a bill payment, money transfer or creating a fixed deposit public started using net banking (online banking). Online banking or internet banking gives an ease option to do the transactions with few clicks, without going to the bank and standing in the long queues. However these facilities have to be used properly otherwise there could be possibilities of phishing fraudulent activities. This could cause hack you bank account and try to watch over your confidential details.

There are few tips may help you to do the Internet banking safely & securely.

1.Change your password frequently.

When you are first time online banking user you will be prompted to change the password after login. Though you need to change this password to keep your account safe and secure. As well as change your passwords in a regular intervals. Try to make your password more complicated with numbers, alphabets, and symbols etc. Do not use your name date of birth etc. this can be hacked easily. Never share your passwords with anyone, most important thing is keep your passwords safe.

2.Use licensed anti-virus software

Many people’s bank account used to hack by some virus or by malwares. To protect your system and the virus which are spread through Internet can be detected by anti-virus software’s. Original licensed anti-virus will help you to protect your machine from these kinds of virus and malwares. Pirated anti-virus software may be available at free of cost, but these software’s never help you to remove the new virus from your machine. Apart from that you will be notified whenever there is a new release & updates periodically. Ensure that you update your anti-virus software regularly, So that you can keep your information confidentially.

3.Do not use public machines (Computers) for Online Banking

When you are planning to do some transactions please use your own private machines. Never use public machines especially Internet café and common libraries to do any kind of online transactions. Because these are the places crowded always and there could be a great chances of tracing your password. If you happened to login through such common machines, make sure you delete the cookies, browsing history and the temporary files from the machine. Never save your user id and passwords anywhere in the machine.

4. Do not share your details with anyone.

A very important thing is never share your user Id, password your cvv details or your debit card details with anyone. No bank will ask you to share the details. Never the share any of these details over phone or email. Use your login id and password in the bank’s official page and make sure the URL is secured. Look for the “https” in the bank’s URL, which will confirm the site is secured.

5. Always sign-out

Make a habit of sign out from the system once you are done with the activity. Never close the browser tab instead of sign out. This will avoid nasty action in your bank account, again this is a common safety procedure.

6. Go with two level authentications:

Check with the bank for two level authentication systems. Now a day most of the banks are coming up with two level authentication methods to avoid suspicious transactions. Many banks offer a unique OTP (One time password) to login the bank account and do the transactions. This OTP’s are time bounded and this can be used for only one transactions.

7. Monitor your accounts regularly:

We strongly advised you to create a notification setup for your account, so that you will be notified whenever there is a trade. Once you logged in the online banking systems you will be able to see the last login information’s. Make a routine of log into the online banking account and verify your account balances. If you are not doing so, please do it so at least once in 2 – 3 days which is fair enough. If you find anything suspicious contact your bank immediately.

8. Use bank URL’s to log in

Just keep in mind no online banking providers send a mail to their clients with the link to use online banking, if so that could be fake. Instead always type the bank net banking URL’s and use your log in credentials. Even you can book mark the URL for future use.

9. Contact your bank immediately:

With Internet banking facility you have access to your account 24×7, so take an advantage and check your account details regularly. When you find any hitches using online banking, any suspicious activities found in your account do not hesitate contact your bank immediately and report the transactions.

I presume these information’s are known to everyone but still I would like to spread it to all to have an effortless and secure transaction through online banking without any hitches.
If you have any more information related to safe online banking please use the comment window to spread it across.

Ahh we understood that you are in the urge of understanding the importance of a financial advisor. At the same time something popping up your mind that “Do I still need a financial advisor or a planner to decide my retirement, child planning or wealth management?”.
A hypothetical question! Let me try to explain why you require a financial planner or an advisor to protect your money or to start with your wealth creation.

Who are a Financial Planner / Advisor?

Professional with deep understanding in finance, taxation and wealth management who service their clients to accomplish their financial goals by allocating their money in different financial instruments like equity, mutual funds, Term Deposits etc. For many people the goals are towards their children education, retirement planning, buying a home, starting a business, vacation, wealth creation etc.

Financial advisor carry out their activity through “fact finding” sessions by asking number of questions to understand your requirement and your current financial positions. Based on the discussions they come up with the affordable and suitable financial products for you to achieve your future goals.

Though the financial advisor do the same activity, but the immense difference among the service are provided by different types of advisors and now the services may cost you few thousands.

Now a days professional are coming up with different titles, sometime they are financial planners, financial advisors, and Investment planners, Investment advisors or wealth managers. They may not do the same type of work, in general financial planners or advisors may be / interested able to help you on the complete picture of portfolio including budgeting, debt balancing and financial planning, however Investment advisor or wealth managers mostly will help you on finding the best investment opportunities.

Fee based Planners

Now fee based planners are quite popular in the industry and they provide a solution or recommendation to you for a fee. The fee can be an hourly fee or a planning session fee or it may be charged as an annual fee based on the assets under management (AUM). They offer financial planning, retirement planning, child education planning, budgeting; debt balancing etc. the entire fee details are revealed to the clients upfront and the clients can understand the exact service what will be getting for the fee. The biggest advantage here is, the service what we are getting is an unbiased advisory since the planners don’t get any compensation or sales fee from the organizations. So they do not offer you any particular product.

Commission based planners

They also provide the same set of service as fee based planners, however they don’t they don’t charge any fee from their clients. They receive commission or a brokerage from the organization for selling the product. Mostly they receive a percentage of the total amount clients invest in particular funds or products. Now you may think that the possibility of suggesting a product which gives them a big commission even though they are a profitable to the client.

You may have a question now when do I need to hire a financial planner? Hmm tricky & a good question, its completely personal, if you have any queries related to money, taxation, saving, retirement planning or just a re balancing your financial portfolio, financial planner or an advisor can help you. Because they are in the market, they will get the updates on the inflation, deflation, GDP, market situation and a global economy etc. they will be able to help you professionally. On the other hand may tend to take an emotional decision during the crisis.

However if you’re capable to manage your finances without any emotional decision, if you find enough time to do the research, if you have amole amount of knowledge or skills when it comes to investing, then absolutely you do not require a financial planner. If your answer is no for any of these question definitely you should hire a financial planner to take care of your financial situations.

How much you pay for the planning or advice?

Fee based financial planner may charge from Rs 1000 to Rs 5000 per hour, you may find some planners will advise only HNI’s and impose investment of Rs 5 lakh on the low end ranging upto crores. Commission based advisers will receive a percentage of the total number of transaction that you make. Financial planners also offer managed Portfolio Management Services (PMS) may charge 0.2% to 2% of the total investment amount.

Ultimately this is absolutely own discretion of individuals to choose financial planner / advisors to make their money grow, and again when you get an advice from the professional it is your duty to understand the concept well and ask them many questions before investing in any products. Finally it’s your hard earned money. At the same time nobody can force anybody to take advisory service or force them to invest in the recommended products.

The topic is going to be more complicated to expound it in my own way. Well let me try to simplify as much as possible. We all love our children and pamper them utmost. Many parents give lot of gifts to their children and privileges in order to make their child happy. I completely understand this, the way the parents love and affection to their children. Even I did the same thing when it comes to my child.

@MPF

Now a days children are smart enough to be independent and they are prepared to take the responsibilities from us. May be a month ago me and my friend had a discussion about grooming children and the topic channeled towards giving gifts, when I asked what was the greatest gift you ever give it your child, he was saying Toys ,Cars, travel etc.. The next question was ‘’ did you ever see your child using the gift more than a week or month ‘’, he replied normally my child use to play a toy for about a week .I immediately asked him ’’Did your child learned any lesson from the gifts?’ ’He questioned me’’ lesson from the toys’’.

Yes, Many of the parents are willing to give gifts as much as possible, but are we ever thinking how my child is going to learn a lesson from the gift which I suppose to give? Now you might be thinking that what this guy is trying to say ! I said to my friend why don’t you gift a Bank account to your child , he was confused and asked me,a bank account to a child? I said yes. A bank account helps train the routine of saving in children from their early stage and this is absolutely a great platform to absorb the bank operations .It might be the right time to set up their own bank account as we are living in a competitive world, they should know the things better.

As well as providing an indication into how banks are actually running,and the terms of credit and debit will help them to understand and manage their money effectively.At the same time this will create a place to invest their pocket money and birthday money.

Now you may be thinking that,is my child old enough to have a bank account? Kids saving account typically comes with a parent’s joint ownership.That mean either of the parent can be a joint owner to manage the finances until the child is ready to manage their own.Because of the setup,your child doesn’t require any age criteria typically but few banks says there is an age criteria of minimum 2 years to own a bank account.

THINGS YOU NEED TO CONSIDER FOR OPENING A KIDS SAVING ACCOUNT

Many banks are offering a kids saving account with many feature like no minimum balance(but typically require a few hundreds as a minimum balance),good rate of interest,ATM cards and online access etc.You can teach your children about the online transaction which is really important for them to understand their transaction and teach them about the online security as well,but I would strongly advice you to take your child to the branch,which will help them to familiarize with the process linking their account.Many banks are offering 4 to 6% rate of interest for the savings.ATM cards are the real benefit for them to understand how the transactions are happening and how to withdraw the money when you are on the go.

HOW DO I OPEN AN ACCOUNT FOR MY CHILD

Opening a kid’s account is not much different from opening a new account for us.Spent some time to analyze the bank which is closer to you and giving good features for you child’s account.Have 3 passport size photos of you and your child,your pan card and address proof,kid’s birth certificate and ID proof(may be a school dentity card/Aadhar card) and you would need to fill up simple application form to start with.

The good thing is any banks started giving freebies to reinforce the habit of young investor.After opening a kids account,start teaching your son or daughter how to practice basic banking process by involving them while filling the forms.

Demonstrate how to use ATM to withdraw money and check the account statements.This could be a valuable life lesson for them by prioritizing the savings against over spending.One that takes time to learn the process but encouraging them will make a huge difference.Opening a bank account for your child account will be the best way to introduce a concept of saving/investing at an early stage.

This should start as early as possible.Some parents like to be in denial mode about the fact that the child is not fully fledged to have a bank account.Be a guide and encourage children from time to time.You will be amazed at how much they can achieve!Children are very adaptable but the moment they realize that you are going to do everything for them,they let go.